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William O’Neal gave us the cup and handle patterns in his 1988 book titled “How to Make Money in Stocks”. Even though this chart pattern was initially developed for the stock market, the forex market can also be traded with chart patterns and so the cup and handle pattern has been successfully applied to the […]

Breakouts are a very regular occurrence in the forex market, and their occurrence has major implications for the price action of the currency pair and by extension, the trader’s positions in the market. A breakout is defined as a price movement that breaks through an identified level of resistance or support, usually accompanied by heavy […]

How would you feel when you have worked hard to develop a strategy, paid a programmer some good money to code the strategy into a robot or trading algorithm software, then put it up for sale hoping to make some good money from it, only for you to see the same product you toiled so […]

The attraction of forex and other financial derivative instruments is that a trader can use leverage, and the level of leverage that can be used in forex is higher than in the stock market. Leverage allows a trader to use a small amount of money to trade the markets, as the brokers will usually supply […]

The rectangle pattern is another chart pattern that traders should watch out for. This pattern is a continuation chart pattern that appears as a period of consolidation in the middle of a trend, with the asset resuming its move in the direction of the previous trend post-consolidation. Two trend lines can be drawn to connect […]

ECN stands for Electronic Communication Network, and is a system of dealing in the forex market where brokers obtain prices from several liquidity providers. This price data (market data) is provided to traders without any interference, while forwarding all orders placed by buyers and sellers to the liquidity providers for execution. Under the ECN arrangement, […]

Rounding tops and bottoms are yet another set of chart patterns less popular but effective at sucking profits from the Forex market if used correctly. They are both reversal patterns that signify the end of a trend and the beginning of a new one. Rounding bottoms are formed when an arc is traced round the […]

The diamond patterns in forex earn their name because when the pattern is completed and boundaries are drawn in with trend lines, they form the four sides of a diamond. These diamond patterns are reversal patterns, and their appearance at the extremes of the trend signal a market turning point or reversal. There are two […]

Have you been the victim of an elaborate scam in the Forex market? Not to worry. There are places where you can run to for help if you feel you have been taken advantage of. There are regulatory agencies which have been created to protect you and I from the various Forex scams that are […]

Today, we will go through the processes that constitute the correct approach to a typical trading day for a forex trader. The most important component of a typical day in the trading business is to first understand the sentiment of the market. A trader who understands what the prevailing market sentiment or feeling is will […]